Telecommunication Companies in Ghana to withdraw upfront deduction of 9% CST
Mobile Network Operators (MNOs) in Ghana have agreed to stop the upfront deductions of the Communication Service Tax (CST).
This announcement was made after an agreeable meeting with the communication ministry and the various telecommunications in Ghana.
With everything progressing, the telecommunications will now apply the 9% CST through tariff adjustment.
Even though the agreement to stop the upfront deduction has been reached, Ghana Revenue Authority (GRA) will still calculate and account for the CST as an upfront charge.
The Minister, Mrs Ursula Owusu- Ekuful, said the upfront deductions seemed to her like a deliberate attempt by the telecommunications to make the current government look bad.
She said, “The Ministry met mobile network operators and the regulator on 7th and 8th October 2019 on this unusual practice which flew in the face of industry experience and we were informed by MNOs that they took advantage of the 3% increase to pass on the entire tax to subscribers. GETFUND, NHIS levy and all other taxes imposed on entities doing business in Ghana are treated. The extraordinary upfront deduction of CST and notification of same to subscribers must stop with immediate effect.”
The Ministry has made a request to the telecommunication companies to put a stop to the tax upfront because it tarnishes the image of the current government.